| When you look for a retirement calculator on the | | | | - It should allow you to specify your estimated post |
| Internet, you will not have to look far. Just search | | | | retirement income. Many retirement calculators use a |
| Google for "retirement calculator" and you will find | | | | fixed percentage of preretirement income as the |
| more calculators than you can use in a lifetime. | | | | necessary post retirement income. These |
| Making the decision which retirement calculator to use | | | | percentages are usually in the 75% - 90% range |
| is critical to enjoying a secure and happy retirement | | | | which for many people is too high. The best |
| so do not accept the first one that you find. Many of | | | | calculators allow for time brackets for your |
| the calculators that are listed on the first page of the | | | | retirement income since necessary retirement income |
| Google search results for "retirement calculator" are | | | | usually decreases with age. Create a budget of your |
| not the best calculators. They are on the first search | | | | estimated retirement expenses and enter that |
| page because they are sponsored by large company | | | | estimate on the calculator. You can find more |
| websites that have high Google page rank. | | | | information on this in the resource information at the |
| Virtually all calculators ask basic questions about | | | | end of this article. |
| current age, estimated retirement age, anticipated | | | | - Make certain that Social Security is included in the |
| years in retirement, current value of retirement | | | | calculator and that it allows for individual input for |
| savings, annual salary, amount added each year to | | | | both spouses. Also, it should allow you to input the |
| your retirement savings, etc. However, there are | | | | benefits. Some calculators estimate Social Security |
| some very important questions that only the best | | | | based on your age. However, the estimates can be |
| retirement calculators ask. | | | | grossly inaccurate since the calculator has no way of |
| Here are seven important features to look for to | | | | knowing how much you or your spouse contributed |
| find a good retirement calculator: | | | | to Social Security during your working life. Social |
| - It should allow individual input for you and your | | | | Security is usually a major component of retirement |
| spouse. It is likely that you are different ages and | | | | income and it must be accurate in your calculations. |
| your social security benefits will be on a different | | | | - The calculator should allow you to enter the |
| schedule. Also, one or both of you may have a | | | | anticipated inflation rate. Many calculators estimate |
| pension which is distributed on a different schedule. | | | | this for you, but inflation in 2009 was much lower |
| Withdrawals from your IRAs may be timed | | | | that past averages. It is possible that the calculator |
| differently. Make certain that there are different input | | | | may not have been corrected for this and it may |
| fields for all of this information. Some calculators have | | | | estimate inflation too high which would require more |
| one box that you can click to indicate if the | | | | retirement savings than if inflation stays low. |
| calculation includes a spouse. Do not accept this as | | | | - Look for some additional features that no other |
| the calculator having spousal input. More than likely, | | | | calculators offer such as comparing your retirement |
| this input only changes the Social Security benefit | | | | plan to the cycles of the stock market over history |
| estimate which is discussed later in this article. | | | | and telling you how many times your retirement plan |
| - Most seniors contemplate having a retirement job | | | | would have been successful based on past market |
| so the calculator should allow for income after | | | | performance. You can find more about this calculator |
| retirement. It should allow input for the income | | | | in the resource information at the end of this article. |
| amount, when the income starts, and when it stops. | | | | As you can see, retirement planning involves more |
| This can have a substantial positive impact on your | | | | than picking a calculator, entering a few items of |
| retirement finances. | | | | data, and getting the results. The way you spend the |
| - It should allow for lump sum additions to your | | | | latter years of your life is important to you and |
| retirement savings and allow you to specify the date | | | | especially to your spouse. You owe it to both of you |
| when you predict this event will happen. Many seniors | | | | to invest time and effort into creating a solid |
| own their home which is their largest single asset. At | | | | retirement plan. Use only the best retirement |
| some point, they will probably sell their home and | | | | calculator to develop and validate your plan. |
| move into an apartment or assisted living facility. The | | | | For more information about retirement calculators, |
| income from the house sale will help pay the | | | | refer to the resource information at the end of this |
| apartment rent. | | | | article. |